Wedoany.com Report-May 7, Bayer, a German company specializing in pharmaceuticals and agricultural pesticides, has announced its decision to exit the seed treatment equipment business in the United States to strengthen its financial position. The decision was communicated to customers via an email.

A Bayer spokesperson confirmed the move, noting that the business produced equipment used to apply protective treatments, such as fungicides and insecticides, to farm seeds before planting to enhance crop yields. The email stated: “This is a difficult decision, but necessary to help secure the financial future of the company.” It further explained that Bayer will redirect resources to its core strengths in crop protection products.

As part of this transition, Bayer will begin closing its seed treatment equipment manufacturing facility in Shakopee, Minnesota, over the next few months. The facility includes the SeedGrowth Equipment Innovation Center, opened in 2015 with a $12 million investment to advance research connecting equipment and seed treatment solutions.

While Bayer is discontinuing the manufacture of seed treatment equipment, the company remains committed to developing seed treatment products. This strategic shift aims to focus on areas of expertise that align with Bayer’s long-term goals, amid challenges including weak earnings and rising legal costs.

Bayer’s CEO, Bill Anderson, is leading restructuring efforts to address these financial pressures and improve the company’s performance. The exit from the seed treatment equipment business is part of a broader strategy to streamline operations and prioritize high-value segments of the agricultural portfolio.

The closure of the Shakopee facility marks a significant step in Bayer’s efforts to optimize its resources and ensure financial stability. By concentrating on crop protection and seed treatment solutions, Bayer aims to maintain its leadership in agricultural innovation while adapting to market and operational challenges.